Emerson to take space in Westinghouse HQ

Emerson Electric, a global technology and software company, has reached a deal to occupy nearly 150,000 square feet of space at the Westinghouse headquarters in Cranberry.

The company, whose local presence is currently based at the RIDC industrial park in O’Hara, is taking 142,000 square feet over two floors at the Cranberry Woods campus. Real estate sources said the deal is for 15 years.

St. Louis-based Emerson has been exploring potential space options in Pittsburgh since last summer. At RIDC, it occupies about 270,000 square feet.

In announcing the decision, Emerson described the move of its power and water solutions business as a relocation to a more energy-efficient facility.

“The decision to move to Cranberry Township will continue the power and water solutions business’s 100-year tenure in the Pittsburgh region while simultaneously showcasing Emerson’s commitment to sustainable operations,” the company stated.

Bob Yeager, president of Emerson’s power and water solutions business, added that the move “is a critical step to accomplishing both our talent development and sustainability goals and demonstrates the impact those goals have in our local communities.”

The decision represents a downsizing for Emerson. Joe Dugan, a company spokesman, told the Pittsburgh Business Times last June that the firm had more space than it needed at RIDC. Mr. Dugan said Thursday that Emerson is planning to sell the three buildings it owns and occupies in the RIDC park.

At 142,000 square feet, the new lease would be one of the biggest in the region in recent years, particularly given the fallout from the COVID-19 pandemic.

It would be “very significant in any market,” noted Gerard McLaughlin, the Newmark executive managing director who was not part of the deal. “It’s good news that they’re going to be here for the long term. I think we should all be very happy with that.”

The space Emerson abandons at the RIDC park will only add to the sizable amount of vacant office space available in the region, Mr. McLaughlin said.

As Westinghouse has scaled back its presence in Cranberry over the past five years, it has put about 315,000 square feet of its space out for sublease.

The Jones Lang LaSalle real estate firm has been marketing the space. Over the past few years, it has attracted several tenants, including Ally Financial, PLS Logistics and RDX Technologies.

Before the Emerson deal, Mr. McLaughlin believed that there was about 29,000 square feet available for sublease at the Westinghouse campus, raising the possibility that Westinghouse may be giving up more of its space.

JLL officials were not immediately available for comment.

In its announcement, Emerson stated that it plans to renovate and modernize its new space to “attract talent as the business continues its focus on ensuring the availability of safe, reliable, and sustainable power and water globally.”

Emerson has some history with Westinghouse. It purchased the power and water solutions business, a former Westinghouse Electric Corp. unit, from CBS Corp. in 1998 for $265 million.

Mark Belko: mbelko@post-gazette.com